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Is Gold Finally Topping? Too Late to Buy Gold?

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Could gold finally be topping out here? The base metal has doubled since bottoming out in November 2022. There have been only a few pullbacks along the way. They’ve been so mild that the last time gold hit its 200-day moving average was November 2024. Today’s action came down to test the 50-day, something that hasn’t happened since May 16th.

While it does feel a bit “toppy” I can’t help but point out the series of higher lows the stock has consistently put in. Even a bit deeper move through the 50-day would still see gold in an uptrend. I’d need to see a break of $3,120, the May low for a reversal in the short-term. A little bit of a consolation would be healthy.

Let’s take a look at not only the SPDR Gold Trust (GLD - Free Report) but also the VanEck Gold Miners ETF (GDX - Free Report) and the VanEck Junior Gold Miners ETF (GDXJ - Free Report) .

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding of Gold’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other


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